Asset purchase agreement

Use this free asset purchase agreement template to help you agree on terms between buyers and sellers.

Our templates are for general information only. You should not rely on them, and Juro is not liable for any reliance on them. The templates might contain errors, including unlawful provisions and might create risks and liabilities if used. The templates are not legal advice, nor a substitute for it. By accessing any template, you accept these terms and agree that any use is at your own risk. Some of these templates were created using generative AI with human-assisted prompts.

Asset acquisitions are intricate transactions with multiple stakeholders involved.

A solid Asset Purchase Agreement (APA) is fundamental in establishing the relationship between the buyer and the seller, ensuring a smooth transaction for both parties.

What is an asset purchase agreement?

An asset purchase agreement is a legal document that clearly defines the terms and conditions under which a business's assets are transferred from the seller to the buyer.

This could involve tangible assets like machinery, real estate, and inventory, or intangible assets like patents, trademarks, and customer lists.

The first party, the seller, offers specific assets for sale, excluding liabilities. The buyer, the second party, agrees to purchase these assets, often with the intention of integrating them into their existing business operations.

What is the purpose of an asset purchase agreement?

Asset purchase agreements detail the specifics of the asset transfer, including the assets involved, the purchase price, and the responsibilities of each party. They provide a framework for conducting the transaction in line with legal requirements, such as due diligence and clear title transfer.

APAs are crucial for businesses as they ensure clarity, transparency, and protection for both the buyer and the seller.

When should you use an asset purchase agreement template?

Understanding the significance of an APA is one thing, but recognizing when to use one is equally important. Here are some common scenarios:

Selling or buying a business division. When a company decides to sell a specific division or department, an APA outlines the assets involved and the terms of the sale.

Who is responsible for managing asset purchase agreements?

Typically, the seller's legal team or contract manager takes the lead in drafting the APA. However, both parties, along with their respective legal teams, play a significant role in reviewing, negotiating, and finalizing the agreement.

What should an asset purchase agreement template cover?

A comprehensive APA template should address the following:

Parties involved. Identifying the buyer and the seller with their legal names, addresses, and contact details.

Traditional workflow for managing asset purchase agreements

1. Drafting the agreement. The seller's legal team drafts the APA using a template, customizing it to the specific transaction.

How can an asset purchase agreement template help?

An APA template can significantly simplify the transaction process. It offers a standardized document that can be tailored to each deal, ensuring all critical elements are addressed and compliant with legal standards.

Can digitization streamline your asset purchase transactions?

Using an advanced automation platform like Juro can transform the efficiency with which businesses handle asset purchase agreements through these capabilities:

Automated agreement frameworks. Finance departments can create adaptable asset purchase agreement templates that are simple to modify or update within Juro’s intuitive text editor.

Automate your asset purchase agreements with Juro

Modern contract management software can automate APAs, making the process faster and more efficient. Features like automated templates, real-time negotiation, eSignatures, and secure storage can revolutionize the way APAs are managed.

Juro’s flexible platform lets you agree, execute and manage contracts up to 10x faster than traditional tools and integrates with systems you already use.

For more insights, explore our guide to contract lifecycle management software for businesses or click below to book a personalized demo.